Mauritius, one of the most popular countries for setting up second homes, will probably see a fall in prices this year, according to estate agents. Holiday home projects have sprung up on the coastline since the Indian Ocean island opened its doors to overseas property buyers in 2005.
These developments are mostly gated communities with leisure facilities including golf courses, spas and restaurants. There are two types of communities - Integrated Resort Schemes (IRS), launched four years ago, in which villas are mostly available, and smaller, less expensive Real Estate Schemes (RES), started 18 months ago, which are apartments and houses.
IRS project Villas Valriche, on the southwest coast, will comprise 52 homes in phase two, seven of which have been sold since marketing started last November. Its developers, South Africa-based Second Lifestyle and Mauritian landowner Hector Espitalier-Noel, said completion of the second and third phases might be delayed if sales remained slow. This is because they cannot build the homes until buyers decide what style of villa they want. Twenty four styles are on offer.
'Phase two was launched at the end of 2008 and, although interest has been very high, the global market conditions have slowed buyers' willingness to put down deposits,' said Robert Green, director of Cluttons, the sales agents for Villas Valriche. Prices start at US$950,000 for the estate's freehold villas.
Harry Lewis, international residential director at estate agency Savills, said sales were traditionally weak at this time of year which exacerbated the downturn. 'We've seen a mirror situation to all high-end resort developments worldwide,' he said. 'There has been a substantial reduction in inquiries, prices are softening but not as quickly as many would hope, and everyone forgets that January and February is traditionally our slowest selling period of the year.'
The slowdown follows strong sales at initial IRS projects until last year. Anahita and the Tamarina Golf Estate and Beach Club are both sold out. At Villas Valriche, 123 of 132 plots in phase one were sold following its launch in May 2007.